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The disclosure limit would be reduced from $13,500 to $1000 per financial year, non-compliance could result in prison and donations would be published online within weeks.

The opposition says it has legal advice the reforms would give Labor a potential $6 million advantage through its union affiliations.

The government rubbished the suggestion.

"We would restrict unions to $4000 just like every other corporation just like every other individual," Special Minister of State Gavin Jennings told reporters.

The government will work with minor parties to get the changes through parliament, he said.

"In an act of political stupidity, I believe, Matthew Guy has walked away from it."

But the crossbench is also not convinced.

Reason Party MP Fiona Patten said minor parties would be financially hamstrung by the changes: unable to collect more than $1000 from any one donor each year and not helped by the public funding model.

The opposition also said it would not support the government's remuneration tribunal and parliamentary standards bill because it says it would gift MPs a pay rise.

The bill was introduced after former speaker Telmo Languiller and his then-deputy Don Nardella were caught claiming a second residence allowance designed to help regional members with accommodation costs.

Despite both serving metropolitan electorates, the pair were both claiming to live away from home and get the extra cash, which was technically allowable.

Mr Jennings said by not supporting the bill, the opposition had "chosen to be less accountable" on how politicians spend public money.